First phase in transformation of Market Street
Philadelphia, October 2, 2014 – Mayor Michael A. Nutter joined Lieutenant Governor Jim Cawley and Councilman Mark Squilla today to break ground on East Market, a major new mixed-use development on Market Street between 11th and 12th Streets. The first phase of this new development by National Real Estate Advisors is estimated to cost $230 million and will encompass 1100 Market Street, including new construction of a mixed‐use development consisting of 107,000 square feet of new retail with frontage on Market Street and a 322-unit apartment building above the retail space. Also included in this first phase is 34 South 11th Street, former home of the Family Court. This building will be transformed into 150,000 square feet of new office space and an additional 44,000 square feet of ground floor and second floor retail space. The project is estimated to create almost 1,200 construction jobs and 300 permanent jobs.
“In years to come we will look back on the beginning of this East Market project as the day the transformation of Market Street truly began,” said Mayor Nutter. “This historic section of Philadelphia – one of this nation’s earliest retail hubs – will be returned to its former prominence as one of America’s great urban streets. I could not be more excited to kick of this exciting development which will bring new life, new residents, and new experiences to Center City.”
The City has committed $4 million in capital funding as part of the 2015-2016 capital budget which will be used for public improvements. The Commonwealth of Pennsylvania recently designated an additional $2.5 million in an Economic Growth Initiative grant to the development, bringing the total state investment to $10 million.
“Governor Corbett and I are both committed to taking steps that position Pennsylvania as a global destination and create a thriving economic environment that appeals to businesses, tourists and, most importantly, our residents,” said Lt. Governor Cawley. “This progressive urban development will build on the current transformation efforts already underway in the city and will only strengthen Philadelphia’s reputation as a world-class city. When completed, this project will add almost 300 permanent jobs and significantly add to the state’s tax revenue, while providing Philadelphians and those in the surrounding communities greater access to some of the world’s best stores and restaurants.”
Councilman Mark Squilla also spoke at the groundbreaking and has been a strong supporter of the East Market project and other developments in the First District.
“I have supported this project for a long time because I truly believe it will create a thriving community in the heart of Center City,” Councilman Squilla said. “This is a prime development location connecting the business and historic districts for the first time, and I predict that we will see many companies moving here to take full advantage of all that Market East has to offer.”
East Market is owned by National Real Estate Advisors, JOSS Realty Partners LLC, Young Capital LLC and SSH Real Estate and is supported on this project by IBEW, NECA and NEBF.
“We are grateful for this funding support, as it is crucial to the first phase of this transformative project,” said Jeff Kanne, president and CEO of National Real Estate Advisors. “Our vision for East Market is to create a cohesive community where city dwellers want to live, businesses want to put their stakes in the ground and locals and tourists, alike, want to visit for some of the City’s best shopping and dining. We thank Governor Corbett, and Mayor Nutter, for their support of this development. We are excited to put shovels in the ground and bring this project to life.”
During the event Mayor Nutter highlighted the fact that since January 2013 Philadelphia has seen almost $8.5 billion of investment in construction projects completed, underway, or planned. Mayor Nutter also highlighted Philadelphia’s growing population and the presence of exciting new national retailers such as Century 21, Uniqlo, and Nordstrom Rack. He was joined at the event by Deputy Mayor for Economic Development Alan Greenberger who oversees the Department of Commerce and the Philadelphia City Planning Commission, which work together with PIDC to bring projects like East Market to life.
“After years of planning and talking about what Market Street can be, today we get to do,” said Deputy Mayor Alan Greenberger. “We get to break ground and to start construction on the first major project of the new Market Street East. With the opening of Century 21 later this year, and the exciting prospect for a major overhaul of the Gallery by PREIT, I believe that the progress that we will make in the next 12 months will fundamentally reshape this section of our downtown for generations to come.”